Tag: gold market news

Gold has room to overshoot to the topside

Sirhc

Commerzbank technical analysis on gold is looking for it towards $2000:

  • is on course for the 1921.50 September 2011 high
  • there is room for an overshoot to the top of a 49-year channel at 1983.00 … our long-term target …  should hold the initial test and provoke some profit taking
  • Forays above 2000 are expected to remain short-lived”  

Support is offered by the 55-day ma at 1797 

  • and the four-month uptrend at 1795
  • Below 1795 lies the 1765 May high. This guards the 1670 June low.

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Goldman Sachs has a new blowout forecast for gold

Sirhc

Critical information for the U.S. trading day

A weaker day is setting up for stocks on Tuesday, as optimism over U.S. stimulus progress and vaccine news starts to fade, and attention turns to the start of a two-day Federal Reserve meeting.

The asset that stole the show on Monday, of course, was gold GCQ20, 0.69%, which climbed to $1,931 an ounce, the highest settlement in history. That juiced the crowd expecting $2,000 an ounce soon, and leads us to our call of the day from Goldman Sachs, which has ditched its own $2,000 forecast and says we’re going to see $2,300 an ounce in the next 12 months.

The bank also lifted its silver outlook to $30 from $22 an ounce.

Driven by “a potential shift in the U.S. Fed toward an inflationary bias against a backdrop of rising geopolitical tensions, elevated U.S. domestic political and social uncertainty, and a growing second wave of COVID-19 related infections,” gold’s surge to new highs lately has outpaced gains for real rates and other alternatives to the dollar, said a team of analysts led by Jeffrey Currie.

“Combined with a record level of debt accumulation by the U.S. government, real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,” said the team.

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